Los Angeles Sitecore User Group session on the introduction to the blockchain and the real world applications with Sitecore Commerce.

1. BLOCKCHAIN
in Sitecore XC
Brief introduction to blockchain and real world scenarios for its use in
the e-commerce space using Sitecore Commerce. Vasiliy
Fomichev

2. The things we’ll talk about
• Define blockchain
• Review history of blockchain
• Blockchain 1.0 – Bitcoin
• Blockchain 2.0 – Ethereum
• Why use blockchain in e-commerce?
• Real-world objective applications of blockchain (demo)
• Blockchain Identity
• Royalty micro-payments
• Rewards
• Digital right ownership

3. Why should we care?
• Decentralized storage and availability
• Security
• Immutable (only if the rest of the infrastructure is onboard); data is protected from being modified by hashing
algorithms
• Any changes to the blockchain would require more than 50% of compute power of the blockchain
• Traceability and audit
• The ledger transactions are permanent allowing to easily trace and audit activity
• Value Transfer (Bitcoin) & Microtransactions
• Transparency in Supply Chain
• Reduced fraud
• “Tokenomics” – new business model
• Removing the middle man with token based business model
• LearnBlockchain:https://blockchaindemo.io/
• Interestingfacts: https://expandedramblings.com/index.php/blockchain-statistics/

4. What is blockchain?
“A secure digital ledger capable of storing data and running operations that are recorded and verified
chronologically and publicly.”
• Digit“[The Blockchain is] the most important invention since the internet itself.” - Founder of
Netscape, Marc Andreessen
• What is blockchain?
• A secure unchangeable ledger of any type of record
• Smart contracts

5. Where did blockchain come from?
• 2008 – Satoshi Nakamoto releases a Bitcoin whitepaper
• 2009 – the Bitcoin genesis block was mined
• 2010 – two pizzas were bought with 10,000
• 2011 – Bitcoin is used on Silk Road
• 2011 – Litecoin is released
• 2012 – passes $100 mark
• 2013 – passes $1000 mark
• 2015 – Launch of Ethereum
• 2015-now – an endless stream of new blockchains
• There are two camps:
• Bitcoin
• Technology

6. Where did blockchain come from?

7. Bitcoin?
• Decentralized means of storing and transferring value.
• “Bitcoin networks has a computing power of 2,046,364 Pflop/s, compared to 274 Pflop/s
computing power of the 500 most powerful supercomputers combined.”
• Why Bitcoin?
• Fast
• Cheap
• Secure
• Easy to use
• Retailers using Bitcoin: Overstock, Expedia, NewEgg, Dish,
Microsoft, Reed Jewelers, CheapAir
• Current scalability issues causing expensive transactions and
degradation in performance.

8. Ethereum!
• Ethereum is an turing complete blockchain Virtual Machine which can be used
for value transfer, running code and storage.
• Supply chain
• Display product-specific logistic and sourcing information on the site to give more insight for
customers
• Customer can view product’s lifecycle using serial numbers
• Identity ownership
• Customers own their personal information
• Customers receive micropayments or other benefit for access to their information
• Rights ownership
• Ownership and purchase history is stored on the blockchain identity
• Digital assets are released by owners vs shops

9. Ethereum!
• Microtransactions
• Real-time payouts
• Smart contracts
• Loyalties – direct micropayments in store-specific tokens
• Rewards – direct micropayments in altcoins
• Royalties – direct royalty distribution based on blockchain identity and ownership rights
• “Tokenization” creates a new business model where profits are realized from the limited supply of capital
tokens

10. Real world applications (demo)
• Blockchain Identity - store of the identity online
• Royalty micro-payments – payments of a few cents are now possible
• Rewards and Loyalties – these programs can now be easily shared with the use of commonly
accepted tokens
• Digital right ownership – store the ownership of digital assets on the blockchain and take it
with you

11. Code Overview
• SXC-Ethereum – DigitalDownload rendering & custom rule for purchase verification on
Ethereum blockchain
• SXC-CE-Ethereum-Plugin – online identity creation, rewards/loyalty point updates, digital asset
download token retrieval, royalty payment, loyalty and blockchain information display in BizFx
• Mobile-Ethereum-Balance – Xamarin application to retrieve your personal balance from your
royalties smart contract
• Chrome-Blockchain-Extension – Chrome extension, stores blockchain identity; used to apply
identity to e-commerce websites

12. /in/vasiliyfomichev
@vasiliyfomichev
cmsbestpractices.com